Construct an income statement using the following information: net sales, $500,000; salaries, $100,000; rent, $24,000; COGS, $250,000; utilities, $25,000; payroll taxes, $25,000; insurance, $12,000; and interest expense, $5,450. Make sure that you include gross profit, operating expenses, and net profit.

The construction of the income statement is presented below:

Net sales $500,000

Less: Cost of goods sold - $250,000

Gross profit $250,000

Less: Operating expenses

Salaries expenses - $100,000

Rent expense - $24,000

Utilities expense - $25,000

Insurance expense - $12,000

Operating profit $89,000

Less: interest expense - $5,450

Less: payroll taxes - $25,000

Net profit $58,550